BorgWarner Expects $1.7 Billion in New Business for 2007-2009; Fuel Economy, Emissions and Performance Needs Drive Global Growth

AUBURN HILLS, Mich., Oct. 27, 2006 -- BorgWarner Inc. today announced $1.7 billion of expected net new powertrain business for 2007 through 2009, continuing its pace of growth that is faster than that of the auto industry.

BorgWarner is a leading provider of highly engineered engine and drivetrain components and systems that address critical environmental needs around the globe. The majority of the company's new business is outside of North America. About 73% of the programs are expected to be launched in Asia and Europe over the three-year period.

"BorgWarner is well positioned among vehicle suppliers to deliver a broad range of powertrain technologies for fuel economy, reduced emissions and enhanced vehicle stability and performance," said Timothy M. Manganello, Chairman and CEO. "Over the next three years, we believe that our technologies will be a strong growth catalyst as we continue to serve the needs of our global customer base. Our customer base, one of the most diverse in the industry, continues to expand through new business."

Of the total new business, 73% is anticipated from engine-related products such as turbochargers, ignition systems, emissions products, engine timing systems, variable cam timing modules and thermal systems. The other 27% is expected in transmission modules and all-wheel drive systems, including the company's fuel-efficient DualTronic(R) transmission technology and electronic interactive torque management systems.

"As growth in the auto industry shifts globally, our new business is expected to participate in that growth and offset market changes in North America," said Manganello. "Europe accounts for 46% of our expected new business. In Asia, as our expansion there continues, new business has almost doubled and sales are expected to account for about 27% of our new business by the end of the period. Korea and China represent the bulk of that new business. North America, while not growing, is approximately 27% of the anticipated new business over the three years and includes both transplants and domestic vehicle makers," he said.

The company expects noteworthy new business during the 2007 through 2009 period to include:

Engine Group

* Next generation passenger car turbochargers for a number of European OEMs

* Advanced turbochargers for light truck programs in North America and commercial vehicle programs in Europe and North America

* Emissions products for a variety of applications and for an expanding customer base worldwide

* Thermal systems for a variety of applications, including diesel pickups in North America and commercial and light truck applications in China

  *  Chain-driven timing systems for North American, European and Asian OEMs
  *  Variable cam timing for North American and European OEMs
  *  Beru's Tire Safety Systems and Instant Start Systems for various OEMs

  Drivetrain Group

* DualTronic transmission technology for European and Asian programs that move the technology further across a broad range of applications

* Transmission shifting assemblies and controls for new North American six-speed transmissions

* Electronic all-wheel drive, front-wheel drive for North American, Korean, and Chinese OEMs

* All-wheel drive, rear-wheel drive systems for a number of major global OEMs

Auburn Hills, Michigan-based BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The FORTUNE 500 company operates manufacturing and technical facilities in 63 locations in 18 countries. Customers include Ford, VW/Audi, DaimlerChrysler, General Motors, Toyota, Renault/Nissan, Hyundai/Kia, Honda, BMW, Caterpillar, Navistar International, and Peugeot. The Internet address for BorgWarner is: http://www.borgwarner.com/ .